selling your property
selling at auction

important things to know before selling at auction

when selling at auction, many of the steps leading up to the purchase are the same as making a traditional purchase, therefore, it is important that in conjunction with this fact sheet you also read selling a home. below are some important points to consider before selling at auction:

the auctioneer

the first step in selecting the right auctioneer is to choose someone with a proven track record in auctions and an excellent knowledge of the local area. colliers international’s residential sales executives can help you find the best auctioneer in your area.

generally auctioneers must be licensed in accordance with relevant state or territory government legislation. when your auctioneer is a real estate institute member you know that you are dealing with someone who is bound by high ethical standards.

the agreement

the law requires that a written contract must be signed between the seller and the auctioneer. this ‘agency auction agreement’ sets the reserve price for your property, how much commission you’ll pay, and usually gives the agent exclusive rights to sell your property for a period after the auction in the event that post auction negotiations or advertising are necessary.

the promotion

the auctioneer is experienced in planning and arranging the marketing of property including advertising. the extent of the marketing campaign will depend on the amount you are prepared to spend. the auctioneer will clearly explain to you where and how your money will be spent.

some tips for a successful auction:
•work out the appropriate advertising budget to ensure your property is widely and effectively advertised.
•make sure the property is well presented because a potential buyer’s first impressions are crucial to a successful sale.
•it is important that the contract be available well in advance of your marketing campaign. advise your solicitor or conveyancer of your intention to sell your property at auction and have the contract ready to go.
•allow the sales executive or auctioneer to arrange as many inspections with prospective buyers as possible.
•do not disclose or discuss your reserve price with anyone except your agent/ auctioneer.
•advertising material should not refer to the reserve price.

the reserve price

you have the right to set the reserve price, below which the auctioneer is not permitted to sell. consult with your auctioneer and agent when setting your reserve price as they will be familiar with recent sales of similar property in the area. remember to be realistic when setting the reserve price, bearing in mind supply and demand in the area as well as other general market considerations.

options when selling your home

auction benefits

there are numerous benefits of selling your property at auction:

the set sales date allows you to make plans for the future. it forces buyers to act within a specific timeframe or they risk losing the property.
the absence of a set price attracts buyers from all price ranges, with each having a different opinion as to what they would pay for your property.
placing buyers into an open competitive situation will usually achieve the best results.
at all times you are protected by your confidential reserve price, with the help of your mainstreet agent. only you can change this reserve price.
an auction on the property is legally binding. once your property has been sold under the hammer, the sale conditions are set in concrete.

private treaty benefits

when you set the price at which your property is to be sold to the public, you are selling by private treaty.
one agent is appointed on an exclusive basis for a set period to work hard to market your property to the buying public.

without a set sales date, you have time to consider all offers by potential buyers.
all negotiations are private and in a time sequence to suit you.
only one price is being quoted, and your exclusive agent has the freedom to work with everyone in the area.
with regular, honest feedback provided to you, you are able to gauge the success of the marketing campaign as well as the acceptance of the asking price.
many buyers are unwilling to buy at auction because they require conditions. eg: finance.
remember, no selling agency fee is paid by you, unless your exclusive agent negotiates an offer from a buyer that you will accept.
appraisal/selling enquiry

if you would like a free, no obligation appraisal of your property, simply submit your details below and your local mainstreet agent will contact you shortly.

appraisal/selling enquiry

if you would like a free, no obligation appraisal of your property, simply submit your details below and your local mainstreet agent will contact you shortly.

Appraisal Enquiry

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selling guide

selling your property follows a particular course of action, with each step meeting legal or personal requirements.
mainstreet has created a step-by-step guide to the processes you are likely to go through when selling your property.